Iterative Refinement

Quote from LittleMac:

Romanus you think you could find any examples from past charts of the last three situations(i.e. increasing volume appears to confirm pt 3 but comes from 1. RTL Break 2. Formation BO/FBO 3. Spike Bar

Much obliged.
More...

Try this one for Formation BO:
---------------------------------------------

07-26-08 01:41 AM

Quote from Spydertrader:

The Bar to which you refer in your questions represents the only FTT of the day. Price spent the remainder of the day in a down Traverse. In addition, the bar represents an FTT on a Traverse and not a channel. With respect to your Lilac colored annotations, note how increasing black formed at these points (formation break outs).

While I have no doubt others also had drawn in Traverses which simply do not exist one can know this connot be correct by asking oneself, 'What signal for change caused me to reverse short either on the 13:05 or the 13:10 [close of] ES Bar?" (Only using the ES and no medium or fine level tools.)

Hint: There isn't one. And if there isn't one there to get the trader back short, then there must not have been one to place the trader on the long side of the market previously.

Subtle differences exist which require the trader to use differentiation in order to make note of how these changes effect what must come next.

As a result, a Traverse Level Trader entered the day long at 9:55 AM [close of] ES Bar, and reversed short at 11:00 AM [close] ES Bar - holding until End of Day. The market provided no other signals for change - for those trading on the traverses.

I understand how people might think they had a Point Three (simply by watching Volume), but the reality is, today the increasing volume developed primarily from Formation Break Outs. This does not a trend make.

In addition, without a signal for change the traverse simply continues (even though the market required it fan ever so slightly at 13:05).

HTH

- Spydertrader
More...
 
Quote from romanus:

I can't figure out, however, the FTT for the pink down traverse/fanned outward black - dominant in the red down channel.
More...

Ditch the black. With the Pink its the bar after the Signal for change (See Previous Post).

- Spydertrader
 
Again, an FTT represents a Vocabulary Word defined as a signal for change which develops at a specific Point in time. Focus on signals for change and quite often, you'll have reversed, finding yourself on the right side of the market, in advance of the FTT Formation.

- Spydertrader
 
Quote from romanus:

Both...
More...
What I am getting at is, you don't have a green up channel.

The change at 1400 ends the red down channel and starts an up traverse which could be the beginning of a new up channel. But what does it do? Simply fans out the down channel.

Edit: In other words, we don't start a channel with a non dominant traverse.
 
Quote from Avi 8:

What I am getting at is, you don't have a green up channel.

The change at 1400 ends the red down channel and starts an up traverse which could be the beginning of a new up channel. But what does it do? Simply fans out the down channel.

Edit: In other words, we don't start a channel with a non dominant traverse.
More...
I guess I really have to forget what I think I know.
Three traverses, one of them is in the opposite direction of the other two. Something else is necessary to create a channel?
 

Attachments

Quote from Avi 8:

Edit: In other words, we don't start a channel with a non dominant traverse.
More...
I see, what you mean. Thank you for pointing out an obvious mistake on my part. I forgot that trends do not overlap at pt2.:)
 
Quote from Spydertrader:



Besides, no need to overcomplicate the Peak Volume definition. It's simply an acceleration of the Gaussian slope. Again, simply look at a chart.

12:20 and 14:00 represent Peak Volume. 14:40 doesn't.

- Spydertrader
More...

Spyder would I be correct in saying this means that peak volume is evident on the final of the three circled volume bars in my chart because the slope of the fluorescent green bar accelerates over the slope of the fluorescent blue bar. I can see how this is the case in confirming that the 14:00 is peak volume but mathematically I cant understand how the 12:20 IS peak volume and the 14:40 IS NOT Maybe I'm on the wrong bars. Please correct me if I am.

Also I'm including the fact we need at least three bars for peak volume to occur as posted earlier int he thread.
 

Attachments

The pace of the 12:10 bar to the 12:20 bar is 12,858 gain in volume from bar 12:10 to bar 12:15 and then 13,480 gain in volume from bar 12:15 to bar 12:20. Mathematically, this validates that the 12:20 bar did increase acceleration.

But I still cant figure out why the 14:40 is not.
 
You must log in or register to reply here.
Back
Top